The Opportunity Cost of Not Having a RevOps Expert: A Case for SaaS SMBs

Introduction

The role of a Chief Revenue Officer (CRO) in a SaaS SMB is undoubtedly crucial. However, when a CRO does not collaborate with a RevOps expert, the opportunity cost can be staggering. How much are we talking about? Let’s dive into some numbers.

Scales representing Opportunity Cost of  Not Having a RevOps Expert.

The Time Factor

Before we begin, it’s crucial to understand that the opportunity costs outlined below may not be fully realizable in a single year. Implementing changes in sales processes, aligning marketing and sales, or optimizing a tech stack can be time-consuming. Yet, the cumulative effect over several years could easily exceed the numbers we’re discussing.


Opportunity Costs Broken Down

Inefficient Sales Process

Improving the sales process by even 10% could bring significant gains. Consider an average salesperson generating $500,000 in revenue annually. A 10% efficiency improvement would mean a potential gain of $50,000 per salesperson. In a 10-person team, that’s a staggering $500,000.

Misalignment Between Marketing and Sales

A lack of coordination between marketing and sales often leads to lost opportunities. With a $1M marketing budget, even a conservative estimate of a 10% loss amounts to $100,000.

Suboptimal Tech Stack

Inefficiencies in a cluttered or overlapping tech stack could be costing a 10-person sales team around 5% in lost productivity, equating to about $25,000 a year.

Faster Decision-Making

RevOps specialists can provide the analytics and reporting necessary for rapid decision-making. The value here could be hundreds of thousands in either saved costs or additional revenue streams.

Customer Retention

According to Bain & Company, improving customer retention rates by just 5% can boost profits by 25% to 95%. Read the research article here. For a business making $2M from existing customers, a 25% boost would mean an additional $500,000.

Time-Saving for CROs

If a CRO spends even 10% of their time on tasks that could be automated or optimized, that’s $20,000 annually that could be better spent, given a $200,000 salary.

Total Opportunity Cost

Adding these figures, the opportunity cost of not having a RevOps expert is:

$500,000 (Sales) + $100,000 (Marketing-Sales Alignment) + $25,000 (Tech Stack) + $500,000 (Customer Retention) + $20,000 (CRO Time) + Hundreds of Thousands (Faster Decision-Making) = $1,345,000


The RevOps Solution

To mitigate these costs, it’s essential to integrate a RevOps specialist into your team. They can help align your marketing and sales strategies, optimize your tech stack, and improve data analytics for faster decision-making.

Opportunity Costs of Not Hiring Real Time RevOps Consulting

Conclusion

The numbers don’t lie. The opportunity cost of not having a RevOps expert on your team can be substantial. And even if it takes a couple of years to fully realize these gains, the compound impact can be transformative. For a company with $2M in ARR, the opportunity cost represents a significant portion of total revenue. If your company has $10M in ARR, your opportunity cost could exceed $5 million over a multi-year period.

Are you ready to stop the bleed and start optimizing your revenue operations? Let’s get the conversation started.

Further Reading

If you found this article useful, consider reading our other posts on The Overlooked Power of Insight-Driven Revenue Operations and Choosing the Right Tech Stack for Your SaaS Company.

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